The other side of the coin is that the banks seem simply terrified of lending in a business world where turnover is uncertain for existing business let alone new ones, that makes many of them technically insolvent, and in turn puts all banks in default of Basel III. Kiwisavers locked into boom stocks that will run full cycle by the end of the internet revolution may being doing ok for now, but earlier thus year the market gave all those fund managers a taste of what is to come sometime this decade or early next (@strongeconomics predicts december 2032 is D-day) - a market crash in what is considered valuable today and no way to get out once it has started.
So my bottom line is that small gradual diversifications out of Kiwisavers into SME's over the next few years may be fruitful. Defeferred gratification has certainly not been rewarded if you saved your money in the bank, you have been worked over big time by a Reserve Bank world that has created cheap money. But its not cheap if they wont lend it. Its unavailable. Sweat equity is an important part of every startup. Fail early is the new norm. So rather than be put off by a low success rate, expect one, and change the plan early if its not working.
Great idea, raid your retirement fund of $20k, start up some business or other, seeing as you lost your job as there is a global recession going on, I can't see how it can't work, if your business involves going down the gurgler. Oh, and good luck with replacing your $20k after that.
National's simplistic short-term thinking is the last thing we need when investing in a post-covid recovery while confronting climate change.
they, the nationals know only how to manage in favour of themselves. at base they are predatory and thuggish under a veneer of civility.
‘Pop up leader Judith Collins’ among much that made me laugh and frown. Thanks David, enjoyed it a lot.
The other side of the coin is that the banks seem simply terrified of lending in a business world where turnover is uncertain for existing business let alone new ones, that makes many of them technically insolvent, and in turn puts all banks in default of Basel III. Kiwisavers locked into boom stocks that will run full cycle by the end of the internet revolution may being doing ok for now, but earlier thus year the market gave all those fund managers a taste of what is to come sometime this decade or early next (@strongeconomics predicts december 2032 is D-day) - a market crash in what is considered valuable today and no way to get out once it has started.
So my bottom line is that small gradual diversifications out of Kiwisavers into SME's over the next few years may be fruitful. Defeferred gratification has certainly not been rewarded if you saved your money in the bank, you have been worked over big time by a Reserve Bank world that has created cheap money. But its not cheap if they wont lend it. Its unavailable. Sweat equity is an important part of every startup. Fail early is the new norm. So rather than be put off by a low success rate, expect one, and change the plan early if its not working.
Great idea, raid your retirement fund of $20k, start up some business or other, seeing as you lost your job as there is a global recession going on, I can't see how it can't work, if your business involves going down the gurgler. Oh, and good luck with replacing your $20k after that.